Effects of exchange rate changes on East Asian technology-intensive exports

Atsuyuki Kato

    Research output: Contribution to journalArticle

    Abstract

    This paper examines effects of exchange rate changes on technology-intensive exports for five Northeast Asian economies: China, Hong Kong, Japan, Republic of Korea (ROK) and Taiwan. In these economies, China, Hong Kong and Taiwan have increased the shares of high-skill and technology-intensive exports (usually finished goods) while Japan has highly concentrated on medium-skill and technology-intensive exports (mainly intermediate goods). ROK has shifted its exports from finished to intermediate goods following Japan. Panel dynamic Ordinary Least Squares (OLS) with heterogeneous time trends was applied to trade data during the period 1995–2011. Our estimation results revealed that exports with high skill and technology intensity are more sensitive to real exchange rates in China and Taiwan, while exports with medium skill and technology intensity are very sensitive to exchange rate changes except for China. These results are consistent with the current roles of those economies in the regional production networks.

    Original languageEnglish
    Pages (from-to)809-821
    Number of pages13
    JournalJournal of International Trade and Economic Development
    Volume24
    Issue number6
    DOIs
    Publication statusPublished - 2015 Aug 18

    Fingerprint

    rate of exchange
    exchange rate
    media skills
    Taiwan
    China
    Japan
    Korea
    economy
    republic
    Hong Kong
    real exchange rate
    effect
    trend

    Keywords

    • exchange rate
    • production networks
    • technology-intensive exports

    ASJC Scopus subject areas

    • Geography, Planning and Development
    • Development
    • Aerospace Engineering

    Cite this

    Effects of exchange rate changes on East Asian technology-intensive exports. / Kato, Atsuyuki.

    In: Journal of International Trade and Economic Development, Vol. 24, No. 6, 18.08.2015, p. 809-821.

    Research output: Contribution to journalArticle

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